Tuesday, June 12, 2012

A Shift in Business Mentality.

The term "International Business" - does it really matter any more? We say that because there are few if any businesses that are disconnected from the global web of inputs and purchases. Hence, does it make sense to talk about international business any more, or should we just consider it to be a more complex case of coping over distances?

Point here is that competition rules; not geography. But geographic names – countries – are "containers" for work practices enabled by legal systems and culture. So the future of competition may rest on more than just corporate shoulders.

Why this lead in? Because the article which follows tells a remarkable story about how China captured the assignment of manufacturing the iPhone. No, it wasn't because of low cost – and that's the point. Competitive capabilities evolve. China may have a low cost advantage in some fields, but today has a far different advantage that will be hard to beat. Unless, of course, you think of a way.